State agencies have more time to spend 2024 budget

The Department of Budget and Management (DBM) has given state agencies more time to obligate and disburse this year’s record P5.768trillion budget.

In its latest national budget circular, Budget Secretary Amenah Pangandaman issued the guidelines on the release of funds for 2024.

“This is to synchronize fund release with the implementation of the overall physical and financial plans, targets, and schedules submitted by departments and agencies,” Pangandaman said.

The aggregate allotment release program of P5.768 trillion includes built-in appropriations of government agencies, special purpose funds, and programmed level of automatic appropriations.

The latest guideline also covered the timeline as to the validity of various appropriations.

For programmed and unprogrammed appropriations, the release, obligation and disbursement for personnel services are until end-2024.

But for maintenance and other operating expenses (MOOE) and capital outlays of programmed funds, it can be released, obligated and disbursed until end-December next year.

The same goes with subsidies to local government units and state-run corporations whose fund releases can be until end-2025 while obligation and disbursement is until the funds are fully expended.

For unprogrammed funds, the release of MOOE, capital outlays and subsidies are until end-2024, but its obligation and disbursement are until end of next year.

Normally, obligation and disbursement of unprogrammed funds are valid until the current budget year only.

For continuing funds from the 2023 allocation, agencies have until year-end to release, obligate and disburse remaining budgets.

“After the end of the validity period, all unreleased appropriations shall lapse, while unexpended or undisbursed funds shall revert to the unappropriated surplus of the General Fund,” Pangandaman said.

“These shall not be available for expenditure except by subsequent legislative enactment,” she said.

MOOE is an expense class meant to support the operations of state agencies such as expenses for supplies and materials, transportation and travel, utilities and the repairs, among others.

Capital outlays, on the other hand, are used for the purchase of goods and services, the benefits of which extend beyond the fiscal year and which add to the assets of the government.

For personnel services, these are expense items for the payment of salaries, wages and other compensation of permanent, temporary, contractual, and casual employees of the government.

Unprogrammed appropriations provide standby authority to incur additional agency obligations for priority programs or projects when revenue collection exceeds targets, and when additional grants or foreign funds are generated.

Latest data showed that for last year, the government has so far made adjustments to the national budget by almost P270 billion, mainly for unprogrammed appropriations, to reach a record P5.54 trillion.

As of end-November, the 2023 adjusted program is 23 percent higher than the 2022 level.